Ethan Allen profits slump as sales fall by more than a quarter

30th January | international | Ethan Allen, the US furniture firm with plans to enter the European market, has seen profits fall 73% in the three months to December 31st as softening demand resulted in a 27% drop in sales.

The firm, which both manufactures and retails, recorded second quarter sales of $189.6m – down from $259.5m in the same period the year before, and profits of $5.5m, which compares to $20.6m in the second quarter of its financial year in 2007.

Farooq Kathwari, chairman and ceo, said the firm had been able to maintain profitability off the back of a number of reductions to its operating costs.

In September of last year, the firm confirmed plans to open small stores or concessions in Europe. It is thought that Central Europe will be the first destination with other countries including the UK being part of the second phase of its European expansion programme.

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